This according to RBC Capital Markets, whose media specialist David Bank (analyst of News Corp., which owns MySpace along with this site) applied Facebook’s $357 per-user valuation to MySpace’s 185 million registered users to determine the social network’s “Facebook value” (Zuckerberg Quotient?)

Not that Bank believes either company is worth that kind of money. Especially Facebook. After all, the company is expected to generate just $150 million in revenue in 2007. Apply that to Facebook’s $15 billion valuation and you get a price-to-sales ratio that is, let’s face it here, insane. Is $1 worth of Facebook’s sales really worth 7.1 times more than $1 worth of Google’s (price-to-sales ratio: 14 to 1) or 17.5 times $1 worth of Microsoft’s (price-to-sales ratio: 5 to 7)? To Mark Zuckerberg, maybe.

Just as the atom bomb was the weapon that was supposed to render war obsolete, the Internet seems like capitalism’s ultimate feat of self-destructive genius, an economic doomsday device rendering it impossible for anyone to ever make a profit off anything again. It’s especially hopeless for those whose work is easily digitized and accessed free of charge.

— Author Tim Kreider on not getting paid for one’s work

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